Philip Schiff: This Bubble Economic climate Is Going to Burst

“We have just seen the tip of an inflationary iceberg”

Philip Schiff recently appeared for the Rob Schmidt Show on  Newsmax   to talk about the trajectory from the US economy.

Peter describes how the Federal Reserve and the US government created a substantial bubble, why it is going to eventually pop, and how to protect your own savings and investments when it does.

The very first question Rob asked has been how is the Federal Reserve going to fix the inflation problem?

Simply put, it’s not. The Fed can make it worse.

Peter said in the first place, the particular Fed is lying about the extent of the problem.   The CPI isn’t going to measure the rise in prices precisely .

“ If we just utilize the same CPI that we used during the 70s and 80s, and applied the amounts today, we would get regarding 15 percent inflation pertaining to 2021. So , last year was worse than any 12 months of the 1970s, and it has been worse than 1980 when CPI was up thirteen. 5 percent. So , this is the most severe inflation we’ve ever noticed. ”

Peter said, unfortunately, it’s going to get worse.

“ We have just seen the tip of an inflationary iceberg. ”

How did we get into this particular mess to begin with?

The Fed created the problem.

“ They’ve been printing all this cash. They sent the printing presses into overdrive throughout the pandemic. But we had an even bigger problem. The government compelled people to stop working during the outbreak. So , people weren’t on the job. They weren’t producing items. They weren’t supplying solutions. They should have spent less cash because they weren’t earning money. The government made the mistake of sending everybody stimulus money so they could go out and spend money to buy products that failed to even exist because they were unable created. That’s why we have the supply shortage — due to the fact everybody is spending money the fact that Fed printed, not cash that they earned producing items and providing services. So , it’s a double-whammy. Prices are going ballistic. And this year is going to be worse than last. ”

The Fed has said this plans to raise rates , possibly to 2 % by 2022. Rob said that doesn’t seem substantial. Philip likened it to spitting in the ocean.

“ Inflation is 7 percent, even if you accept the government’s numbers, which are a lie. How do you battle 7 percent inflation with 2 percent interest rates? Keep in mind, the Fed had rates of interest at 2 . 5 percent within 2018 when they had no inflation to fight. CPI was only up 1 . 9 percent in 2018. Yet, the Fed is not going to raise interest rates now to an amount they were back then. So , everything is a lie. The truth is when the Fed actually raised rates of interest high enough to combat inflation, it would crush the economy. We’d have a even worse financial crisis than 2008. The stock market would crash – bond market, real estate market. Federal government would have to slash spending because interest rates would skyrocket. And thus to prevent that from happening, the Fed is going to not really fight inflation and that’s why it’s going to get so much worse. ”

However the economy seems healthy. Which is until you look beneath the surface area. We have  record trade deficits . The federal government is running  huge budget deficits .

‘ Jooxie is living in a gigantic bubble, and now we’re beginning to see that will because prices are really starting to rise and there’s no way to stop them from going up. And this is when everything comes collapsing down. Since eventually, this stagflationary environment that we’re in, which is much worse than the 1970s – more inflation along with a weaker economy – will prick that bubble. So , even if the Fed won’t prick it, the markets are going to prick it for them. ”

With inflation so pervasive, Peter said anybody who is retired or who wants to retire needs to get out of dollars.

“ Inflation is going to wipe you out. It is a gigantic tax and it’s going to impoverish an entire generation unless they will act quickly to get into real possessions. … You have to own genuine things that can’t be printed because if you just own paper, you can obtain wiped out. ”

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